Steel Dynamics Inc

STLD

Equity

ISIN US8581191009 / Valor 551723

NASDAQ (2024-12-24)

USD 117.06+1.13%

Steel Dynamics Inc
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About company

Steel Dynamics Inc is one of the largest domestic steel producers and metal recyclers in the United States, with a diversified product portfolio that includes hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, and specialty steel sections. The company operates six EAF steel mills and numerous value-added coating operations, with a total steel shipping capability of approximately 13 million tons. In addition to steel production, Steel Dynamics Inc also has steel fabrication operations that produce structural steel joist and deck building systems, serving the entire domestic construction market and national accounts. The company's metals recycling operations collect and process ferrous and nonferrous scrap from various sources, selling the processed scrap to end-users, including their EAF steel mills. Steel Dynamics Inc operates using a circular manufacturing model, focusing on producing quality steel with lower carbon emissions using electric arc furnace technology and recycled ferrous scrap as the primary input.

Summarized from source with an LLMView SourceSector: Energy

Net Sales and Income

Steel Dynamics Inc. reported net sales of $4.3 billion for the third quarter of 2024. The company achieved a net income of $318 million, translating to $2.05 per diluted share. This performance marks a decrease from the second quarter of 2024, where net income was $428 million, or $2.72 per diluted share, and from the third quarter of 2023, where net income was $577 million, or $3.47 per diluted share.

Operating Income and EBITDA

For the third quarter of 2024, Steel Dynamics Inc. recorded an operating income of $395 million. The adjusted EBITDA for the same period was $557 million. These figures reflect the company's solid performance across its platforms, despite a sequential decline in earnings due to lower average realized steel pricing.

Cash Flow and Liquidity

Steel Dynamics Inc. generated a cash flow from operations of $760 million in the third quarter of 2024. The company maintained strong liquidity, with $3.1 billion available as of September 30, 2024. This financial strength allowed the company to invest in growth initiatives and return capital to shareholders through dividends and share repurchases.

Steel Operations Performance

The company's steel operations reported an operating income of $305 million for the third quarter of 2024. The average external product selling price decreased by $79 per ton to $1,059 per ton, while the average ferrous scrap cost per ton melted decreased by $21 to $367 per ton. The Sinton Texas Flat Roll Steel Mill operated at 72 percent of its capability, excluding scheduled downtime.

Outlook and Future Plans

Looking ahead, Steel Dynamics Inc. is optimistic about the 2025 metal market dynamics, expecting steel pricing to recover with a lower domestic interest rate environment and increased onshoring of manufacturing. The company is also progressing on its aluminum flat rolled products mill, set to begin operations mid-2025, which will diversify its product offerings and enhance its supply-chain capabilities.

Summarized from source with an LLMView Source

Key figures

-3.92%1Y

89.9%3Y

238%5Y

Performance

28.3%1Y

38.3%3Y

43.8%5Y

Volatility